Food and Agriculture in Australia and New Zealand isn't as heavily subsidised as it is in Europe and America. That's one possible reason.

It does interest me as to why this is. I think it's this and maybe the geography/population making the mega supermarkets less viable.

I sometimes play with the idea of a food co-op to bring prices down, but haven't got far.

I think there is also some concern that the Coles/Woolworths duopoly is driving prices up. I usually avoid big supermarkets, but I haven't noticed any significant difference in price when I have visited them.

I've noticed our grocery bill (now we are both working) has gone from $70p/w to $130p/w in the last year.

Yeah, there was something in the paper this morning about food prices inflating.

If it's any consolation, the price of consumer electronics, furniture, and clothing have deflated at an equal rate. :)

FX rates aside (I can't ever remember the £ being so weak) my friend just got back and said that a 4 pack of yoghurts was as expensive as a steak!.